• Changetheview@lemmy.world
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    11 months ago

    Many people lock in interest rates for the life of the loan. Most often 30 years for mortgage loans. You don’t have to renew a mortgage’s interest rate unless you get an adjustable rate one.

    This is the main reason why mortgage applications are down significantly right now. People with super low interest rates don’t want to move because they’d have to get a new loan to do so, and interest rates are much higher now. If they stay and they have a fixed-rate loan, nothing changes.

    • JWBananas@startrek.website
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      11 months ago

      The user you are responding to has an account on a .ca domain. In Canada (as well as UK) it is more common for the rate to only be locked in for 5 years.

      • Dark Arc@social.packetloss.gg
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        11 months ago

        Well that’s lame… You guys should do something about that, as a US home owner, having a fixed rate mortgage is one of the best parts about owning vs renting.

          • Dark Arc@social.packetloss.gg
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            11 months ago

            In Canada (as well as UK) it is more common for the rate to only be locked in for 5 years.

            I think it’s pretty clear I was talking about the folks you’re referring to… not you specifically if you’re not in that group… but fair enough.